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[Alpha Biz=(Chicago) Reporter Paul Lee] Daol Investment & Securities Co. predicted to Kumho Tire on the 31st that the trend of excess achievement will continue in the first quarter of this year following an earning surprise in the fourth quarter of last year. The target price was 8,000 won, up from the previous 7,000 won, and the investment opinion 'buy' was maintained.
Kumho Tire recorded an earning surprise in the fourth quarter of last year. Sales rose 11.8 percent on-year to 1.605 trillion won and operating profit rose 711 percent on-year to 149.4 billion won.
"As of the fourth quarter of last year, sales in North America and Europe began to increase rapidly due to the full-fledged operation of Vietnam's expansion," said Daol Investment & Securities Co. "Growth in South Korea and North America made the most significant contribution to external growth."
Daol Investment & Securities went on to say, "With the supply of winter products amid strong demand in the fourth quarter, the volume effect will be clear in 2024 as the expansion of the distribution network through large retailers is underway in Europe and the United States," adding, "There is an increase in sales to Europe due to Europe's expansion of product orders this season, and the priorization of long-term contracts is stable."
"In the first quarter, we expect to achieve sales of more than 14 million copies and record operating profit of 115.7 billion won," Daol Investment & Securities Co. forecast its annual operating profit of 425.8 billion won this year.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
